5. Taxation

Lets make a fair competition possible

The small and medium-sized enterprises contribute to tax revenues in many ways. At the same time, the international tax competition increases. But the EU can only conditionally intervene on taxes, as these are nationally governed within the European Union. Decisions can only be unanimous. On top of that, an EU tax to finance the Union’s expenditures is not allowed.


The sovereign tax policy of the individual member states must be accompanied with an internationally comparable tax system. European Entrepreneurs CEA-PME advocates – for the preservation of fair competition – for a single taxation base for companies. We plead for compliance with the European Council’s Code of Conduct that strives to avoid “harmful tax competition”. National or isolated solutions of single States distort the competition in favor of foreign competitors.

– Harmonize indirect taxes

The EU has the power to regulate indirect taxes such as VAT and excise taxes on energy, provided that differences in the tax systems of the Member States create trade barriers. This possibility is widely used in the field of VAT. Moreover, taxes on mineral oils, alcohol and tobacco are harmonised. The EU must use more its authority competence on indirect taxation for a more extensive harmonization.

– Prevent a financial transaction tax

The European Commission is planning, with the approval by the European Council, the introduction of a European financial transaction tax. European Entrepreneurs CEA-PME is against this tax. This also affects small and medium-sized companies, because also non-speculative transactions are being charged. This does not apply only to big companies. Examples are the transfer of pension assets or security transactions by exporting companies against currency, interest rate and commodity crises.

– Establish competitiveness justice

International corporations have the structure and the budget needed to benefit through targeted design measures from international tax systems. For most small and medium-sized businesses appropriate tax avoidance strategies are not option for many reasons. As a result, the international patchwork of tax regulations causes SMEs a significant disadvantage in the competition with big corporations. European Entrepreneurs CEA-PME invites individual Member States to ensure a fair and adequate taxation for all companies, SMEs included. Also a global tax solution should increasingly be considered.

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“The principle of a sound tax competition is the only one that contributes to reduce taxes instead of increasing them continuously. All reforms in this field must take care to safeguard this aim, which is crucial for the competitiveness of Small and Medium-sized companies in Europe.”

Walter Grupp

Secretary General of European Entrepreneurs CEA-PME

European Parliament Elections on May 23-26th, 2019

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The biggest confederation of voluntarily associated, small and medium-sized companies in Europe.